Rudin Extends $425M CMBS Loan at Manhattan Tower
The company also plans a $100 million renovation at the property.
Rudin has extended its $425 million CMBS loan secured by the iconic 27-story 32 Ave. of the Americas mixed-use tower in Manhattan’s Tribeca neighborhood by as much as four years if it exercises one-year renewal options in 2027 and 2028.
In conjunction with the loan extension, the New York City-based real estate organization said it will begin a $100 million capital improvement and leasing program at the tower, which was built in stages between 1915 and 1932.
Rudin sent the CMBS loan to special servicing two months ahead of its Nov. 1 maturity, to work out an extension. Rudin, one of the city’s largest private owners, operators and developers, announced that an agreement to modify the loan on the 1.2 million-square-foot tower had been reached. The CMBS loan, divided into five notes, was originated by JPMorgan Chase on Oct. 22, 2015, according to Yardi Matrix data. The lender was Wilmington Trust, the same source shows.
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Rudin had remained current on all obligations through the life of the loan, including the time while modification discussions were ongoing.
Iron Hound Management Co. advised Rudin on the modification.
Renovation, leasing plan outlined
As part of the capital improvements, Rudin will add a prebuilt program with work spaces ranging from 5,000 to 10,000 square feet. The firm also plans to upgrade the lobby, renovate its street-level retail with easily customizable opportunities for tenants and create a new leasing/marketing center. The leasing showroom will occupy the entire 25th floor, taking advantage of two outdoor terraces with Manhattan skyline views. The building currently has two floors of retail totaling about 58,300 square feet, according to Yardi Matrix.
Building history, uses
The firm acquired the Tribeca tower—originally known as the AT&T Long Lines Building—in December 1999 for $140 million from AT&T. The landmark Art Deco tower is part office and data center/carrier hotel offering connectivity, resiliency and service throughout the New York City metropolitan area.
The data/telecom portion of the building is approximately 91 percent leased to tenants such as Verizon Telecommunications, Lumen Technologies and Digital Realty, underscoring the asset’s strong positioning amid rising data center investment demand. Office tenants include Dorilton, Cedar, Industrial Color and Industrious.
The building lost two tenants in the past year—iHeartMedia and Dentsu Holdings, reducing 2024 cash flow 49 percent below the 2015 CMBS issuance projections, according to the Commercial Observer. Occupancy was 57 percent as of June, the CO reported.
The tower is one of three highly connected facilities in New York City, ensuring the infrastructure supporting needs of modern media and communications companies. It includes two 140-foot radio towers, access to primary and emergency power sources, redundant HVAC system, fuel storage capacity, access to more than 50 telecommunication networks and significant floor load capacity. Floorplates range from 27,258 to 52,870 square feet.
The LEED Gold-certified building is WiredScore Platinum and uses Nantum AI, an advanced building operating system utilizing artificial intelligence to improve efficiency, decrease carbon emissions and optimize tenant comfort.
Office refinancing deals
Arranging new financing deals has been on the agenda for Rudin in recent months. In September, the firm refinanced 641 Lexington Ave., a 426,775-square-foot office building in Midtown Manhattan, with a $60 million loan provided by Prudential Financial. The 32-story tower was developed by Rudin and designed by Emery Roth & Sons in 1964, with renovations in 2004 and 2013.
The building also has more than 23,800 square feet of retail space. Tenants include Gruner & Co., Rudd Realty Management, State of New York Homes and Community Renewal and Alstom.
In June, Rudin secured a combined $385 million package for 3 Times Square, a 950,000-square-foot office tower in Midtown Manhattan. JPMorgan Chase originated the refinancing package that includes a senior note totaling nearly $108.6 million, an amended and restated note of $194.4 million and an approximately $82.1 million note.
Rudin developed the 30-story tower as the headquarters of Reuters Group PLC, which became Thomson Reuters in 2008. The building was completed in 2001 and renovated in 2024. In addition to Reuters America Inc., other tenants include Chase Bank, Redpoint Cybersecurity Consulting Services, Spectrum Reach and law firm Kilpatrick Townsend & Stockton LLP.
Founded in 1925, Rudin owns and operates 14 office buildings spanning approximately 9 million square feet and 17 apartment buildings totaling more than 4 million square feet.
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